Market voices on:

After the meeting, government spokesman Sun Lih-chyun told reporters: "Vice-premier Chang (Shan-cheng) has made it clear during the meeting asking the four pension funds to play a greater role in the market," referring to government funds worth more than US$230 billion.

The government on Sunday imposed measures to stabilise stocks after heavy recent losses, including banning short-selling below the previous session's closing prices and encouraging banks to buy back their shares.

"Given the close economic ties with China, the slowing economy in China has hurt Taiwan economically, aggravated by the crash of Chinese markets," Mason Li, head of Taishin Securities Investment Advisory, told AFP.

Previously frosty ties with China have warmed under current Beijing-friendly president Ma Ying-jeou, leading to trade deals in an attempt to boost the domestic economy.

However, Taiwan's growth has continued to slow as growth in its giant neighbour stalls, and as local companies struggle to compete with Chinese manufacturers and technology companies.

"The rise of Chinese supply chains competes with local suppliers," said Li.

Taiwan this month slashed its growth forecast for 2015 to a lower-than-expected 1.56 per cent, citing weak demand for its exports and stiffer competition from China in the vital tech sector.